How Do We Manage Mistakes in Organizations?

Managing mistakes within an organization is always a delicate matter. I firmly believe in the #power_of_positive_reinforcement; negative approaches often backfire, leading to demotivation and further errors. However, when financial losses impact the company, the situation becomes more complicated.

I’m grappling with a specific dilemma. One of my manufacturing clients recently shipped a product that was rejected and returned, resulting in a loss of approximately few crores. Another client lost a significant account—20% of their business—due to a serious error made by their #Key_ Account_Manager. In both cases, the directors of these companies are considering financial penalties for those involved.

While I oppose this approach, I find myself at a loss for words, given the substantial financial repercussions. These mistakes are not typical for either organization; both are otherwise high-performing, with a reputation for quality products and services.

What would you recommend in this situation?

#AccountabilityinOrganizations #BusinessResilience #Leadership #Professional #EffectiveCrisisManagement #Interdependence #Inter-being #PositiveThinking